By Teresa Rivas

It's been half a decade since the Covid-19 pandemic upended life around the world, and some trends it brought had the shelf life of a loaf of homemade sourdough bread. Yet others seem more permanent, like consumers' determination to make up for lost experiences.

In short, many people -- especially the wealthy -- are still prioritizing doing things rather than just buying things.

That's the takeaway from a new report on the state of the experience economy from TD Cowen analysts, led by Tristan Margot: "We see surprising demand for the experience economy despite a soft jobs market and inflation," he writes in a note Monday. "But not all experiences are created equal."

That divide runs primarily along the wealth gap, and is consistent across industries. As other analysts have noted, full-service airlines such as Delta Air Lines and United Airlines Holdings are outperforming their discount peers, while demand for premium cabin space and overseas/exotic destinations is outstripping that for the main cabin and domestic counterparts. The same holds true for hotels: High-end chains are still doing well despite weakness for hotels in general as fewer tourists are visiting the U.S.

Among airlines, Delta and United are among Cowen's favorites -- the firm rates them both at Buy, with recent price targets of $66 and $127, respectively.

Likewise, Margot notes that premium theme parks, such as those run by Walt Disney and Comcast, are still seeing strong demand while more traditional ones such as Six Flags look exposed to a rockier economic backdrop. Cowen is most bullish on Comcast, which it rates a Buy, with a $46 price target.

Elsewhere, wealthier consumers are still shelling out for pricey live events, though gambling is more of a mixed bag. Growth rates at bricks-and-mortar casinos are anemic -- as evidenced by six straight months of falling visitors to Las Vegas and a 4% year-over-year decline in revenue -- while online casinos are thriving. Yet people are still willing to spend to attend live events in person.

" TKO Group Holdings (home of WWE and UFC) is seeing solid live audience trends alongside significant upside in ticket prices and per cap sales," writes Margot. "Growth in hospitality sales and packages (both volume and price point) stand out as particularly favorable...Liberty Formula One Group's growth appears heavily skewed toward live events." Cowen has Buy ratings on both stocks, with a recent price target of $220 for TKO and a $106 target on Liberty Media Formula One Series A shares.

Finally, it seems like Americans' plans to stay in shape postpandemic were more than just lip service. Nearly a quarter of adults have a gym membership, led by younger generations, who are particularly interested in weightlifting. Planet Fitness, which Cowen rates at Buy with a $135 price target, "benefits from a growing industry and its strong appeal to younger gym goers driven by its accessible price points and pipeline programs like High School Summer Pass," Margot writes.

Memorable experiences may be more valuable than possessions -- and the stocks that provide them, even more so.

Write to Teresa Rivas at teresa.rivas@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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September 29, 2025 15:12 ET (19:12 GMT)

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